An Assessment of the Appropriateness of the Different Facilities Management (FM) Approaches in Lagos Metropolis, Nigeria

Abstract

purpose of the study was to examine FM organizations’ choice of approaches (insourcing, outsourcing and hybrid) in creating value under their classification of management functions. The classifications namely Strategic FM functions, Tactical FM functions and Operational FM functions were considered. The methods employed in the collection of data included the administration of questionnaire to client organizations’ directors in the study area. The sample frame comprised the 94 FM client organizations listed in the 2016 edition of the Directory of the International Facilities Management Association (IFMA), Nigeria Chapter). The study undertook a total enumeration survey of all the listed FM organizations in Lagos Metropolis. Also, descriptive statistical techniques such as frequency distribution and Relative Importance Index (RII) were used to analyze data. The findings revealed the inherent value adding capabilities of each of the three procurement approaches. For instance, under the strategic FM function, firms preferred to outsource the provision of strategic advice; while they preferred to insource space reallocation. Additionally, their perceptions revealed that both minimization of equipment and structural failures; and maximization of trade staff productivity can be outsourced and insourced. Under the tactical FM function, the firms preferred to outsource service quality in support of their business operations; insource standard needs and quality of performance; and indeed prefer to either insource or/and outsource budgets that has adequate longrun values. At the operation FM function, the firms preferred to outsource effective project management; insource the monitoring of time balance, quality and cost; and preferred to either outsource or insource the development of operation and maintenance needs. However, for the research implications, the study provided insights on the delivery of optimized value addition for Facilities Managers. The RII will direct and guide facilities managers in either effective budgeting or judicious disbursing of resources for the execution of the FM functions in line with the relative levels of importance of the underlying criteria. Also for the practical implications, insightful ideas on how to expand the overall FM service delivery at best value for money was provided. The originality of the work is such that majority of the studies on FM appear to have only examined the benefits of In house and Outsourcing approaches exclusive of the Hybrid approach; this study not only examined the three (3) approaches but also determined their appropriateness and value-adding capabilities.